We have summarized the main Tax related budget points released last night.


Personal Income Tax Changes Some welcome tax cuts at the individual level as follows:


Applicable rates from 01 July 2020

Increase on the 19% bracket from $37,000 to $45,000

Increase on the 32.5% bracket from $90,000 to $120,000


The rates would look like this:


Tax Rate Income Brackets Comment
0% 0 – $18,200 No Change
19% $18,201 – $45,000 Increased upper limit from $37,000
32.5% $45,001 – $120,000 Increased upper limit from $90,000
37% $120,001 – 180,000 No Change
45% $180,001 + No Change



Changes to Low income Tax Offset:

Increase on the offset from $445 to up to $700


For BUSINESS TAX PAYERS  there are some reasonably good news:

1- Expanding access to small business tax Concessions including

  • Deduct certain start up expenditure and certain prepaid expenditure
  • Eligible businesses will be exempt from FBT on car parking and some work-related electronic devices


2- Uncapped immediate write off for depreciable assets

Businesses with turnover of less than $5Bn can claim an immediate deduction on eligible depreciable assets in the year the asset is first used or installed ready for use provided

  • the asset is acquired from 7:30 pm on 06 October 2020
  • it is a NEW ASSET or an IMPROVEMENT


For second-hand assets, the asset can be fully deductible if the cost is less than $150,000 and purchased from 02 April 2019 and first used or installed ready to used by 12 March 2020 and 31 December 2020


3- Write off Simplified Depreciation Pools

Small businesses (turnover under $10mill) can deduct the simplified depreciation pools at the end of the income year up t 30 June 2022.


4- Jobmaker Hiring Credit

The introduction of the Jobmaker Hiring credit applicable to eligible employers hiring eligible employees aged 16 to 35.

The credit will be $200 per week for employees aged 16 to 29

The credit will be $100 per week for employees aged 30 to 35


To be claimed quarterly in arrears with a cap of $10,400 for each additional position created.

Certain criteria for eligibility of employees will apply


5- Tax Free Grants 

The possibility of making government business support grants to be non assessable /non exempt income in other states, just like it currently applies in Victoria.

However, this is not legislated just yet and will be applicable for grants announced after 13 Sept 2020


6-FBT Compliance simplification

Employers will be able to rely on corporate records for FBT purposes instead of employee declarations, thus reducing the compliance for businesses


For COMPANIES only, there is the temporary loss carry back

Applicable for companies with turnover of up to $5bn

Can carry tax losses for years 2020,2021 or 2022 to offset previously taxed profits made in or after 2019 year

There are some limitations for example, the carry back is limited to no more than earlier tax profits and it cannot generate a franking account deficit

Other Budget Tax Concessions

– Granny Flat CGT exemption 

From July 2021, there will be a targeted CGT exemption (subject to the legislation been approved) for granny flat arrangements (where elder people transfer their home or proceeds from Sale to Adult children in return for ongoing housing and care)


As usual, if you have any questions please contact us at


From the team


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